Acc421 Intermediate Accounting: P4-2 Presented below is the trial balance of Thompson Corporation

Acc421 Intermediate Accounting
P4-2 Single-Step Income, Retained Earnings, Periodic Inventory
Presented below is the trial balance of Thompson Corporation at December 31, 2014. THOMPSON CORPORATION Trial Balance December 31, 2014 Debits Credits Purchase Discounts 10,000 Cash 189,700 Accounts Receivable 105,000 Rent Revenue 18,000 Retained Earnings 160,000 Salaries and Wages Payable 18,000 Sales 1,100,000 Notes Receivable 110,000 Accounts Payable 49,000 Accumulated Depreciation-Equipment 28,000 Sales Discounts 14,500 Sales Returns 17,500 Notes Payable 70,000 Selling Expenses 232,000 Administrative Expenses 99,000 Common Stock 300,000 Income Tax Expense 53,900 Cash Dividends 45,000 Allowance for Doubtful Accounts 5,000 Supplies 14,000 Freight-in 20,000 Land 70,000 Equipment 140,000 Bonds Payable 100,000 Gain on Sale of Land 30,000 Accumulated Depreciation-Building 19,600 Inventory 89,000 Building 98,000 Purchases 610,000 Totals $1,907,600 $1,907,600 A physical count of inventory on December 31 resulted in an inventory amount of $64,000 thus, cost of goods sold for 2014 is $645,000.

Instructions:
Prepare a single-step income statement and a retained earnings statement. Assume that the only changes in retained earnings during the current year were from net income and dividends. 30,000 shares of common stock are outstanding the entire year.
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